A small Victorian council says it is sick of the inaction on an important water infrastructure project.

The Mount Alexander Shire wants the state’s water department and contractor Redline to resolve their difference and continue the stalled irrigation project south of Bendigo.

Redline stopped work on the $40 million Harcourt Rural Modernisation Project following a dispute with Coliban Water.

Both parties have met with Victoria's water department to try to save the contract from being cancelled, but there has been no word since then

Mount Alexander Mayor Christine Henderson says she wants to big players to remember the importance of the upgrade for the surrounding district’s businesses and residents.

“We want that modernised infrastructure in place as soon as possible and all the grounds tidied up and the entrances and exits and crossovers that are currently being compromised or in a less than tidy state, we'd like those all tidied up,” she told the ABC.

She said the community wants the project finished.

“It's obviously not our infrastructure project,” she said.

“I understand that there are difficulties between Coliban Water and their contractor. I don't know the details of them. I'd be very happy to hear that they've been sorted out and they can work to finalise that project.”